Trump bill threatens Texas solar industry

Trump's "Big, Beautiful Bill" Threatens Texas Solar Industry

The Texas solar industry is fearing for its future as President Donald Trump's proposed tax plan, dubbed the "big, beautiful bill", puts nearly half of the state's 107 solar manufacturing plants at risk. The Solar Energy Industries Association warns that 331 factories across the US, including 51 in Texas, will shut down or never open if the bill is passed as written, resulting in the loss of 330,000 current and future solar-related jobs, including 94,000 in manufacturing.

Impact on Texas

Texas has become a national leader in utility-scale solar power and a budding manufacturing hub for solar panels and related parts, with the industry currently employing more than 12,400 Texans. Companies like Mission Solar, which announced plans to invest $265 million in a manufacturing expansion, and T1 Energy, which plans to build an $850 million solar cell facility in Rockdale, will be affected by the proposed tax plan.

Industry Reaction

"If Congress does not change course, this legislation will upend an economic boom in this country that has delivered an historic American manufacturing renaissance, lower electric bills, hundreds of thousands of good-paying jobs, and tens of billions of dollars of investments primarily to states that voted for President Trump," said Solar Energy Industries Association President and CEO Abigail Ross Hopper. Supratim Srinivasan, CEO of San Antonio-based Atma Energy, said "There's going to be tons of good people who lose their jobs."

The End of the IRA?

The far-reaching tax bill, which passed the Republican-held House of Representatives by just one vote, demolishes the Biden administration's tax breaks and incentives under the Inflation Reduction Act to support development of batteries, solar, and electric cars. The 1,100-plus-page legislation also slashes billions of dollars in spending on student loans, food assistance, and Medicaid.

'Here in Texas'

T1 Energy Chairman and CEO Daniel Barcelo said "existential changes" to energy tax credits could scuttle the company's plans to invest in Texas. "It may result in things being built outside the U.S," Barcelo said. "As an international investor, too, maybe that's the answer. We would have to pivot. We don't want to do that … we believe in doing it here in Texas."

Demand Boom Ahead

Srinivasan said "The fundamentals won't change. The cost of energy is going to increase and grid reliability is going to continue to be a problem." The state grid operator expects power demand to surpass 150 gigawatts by the end of the decade. Hopper said there's still time for the Senate to work with industry for a more measured approach to cuts that protects jobs and energy prices. For more information on the energy industry, visit the Express-News website.